State officers shun car loan fund despite billions set aside
As of June 2023, only Sh225 million out of Sh3.8 billion had been issued.
Over Sh3 billion set aside for car loans to state and public officers remains untouched, with a parliamentary committee raising concern over the fund’s poor performance.
During a session with officials from the Office of the Auditor General and the Motor Car Loan Scheme Fund, the Special Funds Accounts Committee questioned why only a small fraction of the money had been disbursed.
As of June 2023, only Sh225 million out of Sh3.8 billion had been issued.
Committee chair Kivasu Nzioka, who is also the Mbooni MP, pressed the fund's managers on what they were doing to boost uptake.
"What measures have management taken to ensure it delivers on its core business? And why has the management resorted to investing the funds in Treasury Bills to avoid keeping the money idle?" he asked.
The Motor Car Loan Scheme Fund acting CEO Edna Atisa told the committee that the biggest challenge was that many public servants were unaware of the fund’s existence. She said the fund had taken steps to create awareness, and this had helped increase interest.
"The Fund performance has since improved following aggressive sensitization campaigns. As at 28th February 2025, the Fund had processed and issued Loans amounting to Sh700,696,442," said Atisa.
To ensure more officers apply for the loans, the fund is now working on automating its services and has uploaded loan information to the Government Human Resource Information System (GHRIS).
Atisa said they are also reviewing the rules guiding the fund and are in talks with the Salaries and Remuneration Commission to revise loan limits.
The committee urged the fund managers to do more, warning that the unused billions were a sign of a failed scheme that needed urgent attention.
